Nick Schifrin:

Welcome to the "News Hour."

The U.S. temporarily removed oil sanctions on Iran today, creating the potential for an Iranian economic windfall in U.S. dollars, as the first round of talks ended in Switzerland. Vice President J.D. Vance led the U.S. delegation mediated by Qatar and Pakistan.

The negotiations come as one of the main sticking points, the war in Lebanon appeared, to calm, at least for the day.

Liz Landers begins our coverage.

President Trump:

If Iran doesn't live up to their agreement or if they're not behaving, I will do what I have to do.

Liz Landers:

President Donald Trump today making a veiled threat to Iran if they don't adhere to the memorandum of understanding that was struck last week.

Donald Trump:

We're doing very well in terms of negotiating a fair and reasonable deal.

Liz Landers:

In Switzerland earlier today, Vice President J.D. Vance said talks with Iran are already paving the way for more technical discussions about its nuclear program.

Vice President J.D. Vance:

We did exactly what we wanted to do, which is accomplish four things for the American people.

Liz Landers:

Vance, touting progress, laid out those key points, establishing a mechanism for keeping the Strait of Hormuz open, coordination for the cease-fire between Israel and Hezbollah in Lebanon, a process for the technical negotiations that remain, and an agreement on IAEA inspection of nuclear facilities.

But Iran's Foreign Ministry today denied negotiations on nuclear issues, saying they did not accept any new commitments. Shortly after Vance's comments, Treasury Secretary Scott Bessent announced that his agency would waive sanctions on Iranian oil as part of an interim agreement to end the war.

The license authorizes the production, delivery and sale of Iranian oil in late August. Miad Maleki, a former top sanctions official at the Treasury Department, is now a senior fellow at the Foundation for Defense of Democracies. He called the dollar authorization, allowing Iran to get paid in U.S. dollars, a critical detail in the announcement.

Miad Maleki, The Foundation for Defense of Democracies: Now, as far as cash, I think they have about 67, 68 million barrels of Iranian oil that are within international waters close to China, in Asia. So that becomes available to buyers. And if -- at current prices, that is $8 billion to $9 billion in floating inventory that now becomes available to buyers.

Liz Landers:

Meanwhile, there was a calm in Lebanon today, with no Israeli strikes reported overnight and into today. But it followed a bloody weekend of Israeli strikes.

At a funeral yesterday, a familiar chant, "Death to Israel." Family members gathered to mourn four of the at least two dozen people killed in an Israeli strike on Saturday, including five children. Hours earlier, Israel and Hezbollah agreed to a cease-fire, but Israel refused to leave its occupation of Southern Lebanon.

Hezbollah Chief Naim Qassem yesterday adamant in refusing to back down if Israel doesn't.

Naim Qassem, Hezbollah Secretary-General (through interpreter):

Israel will not stay in Lebanon, and we will defend ourselves. Any violation, we will deal with as we see fit.

Liz Landers:

Israeli Prime Minister Benjamin Netanyahu today also resolute.

Benjamin Netanyahu, Israeli Prime Minister (through interpreter):

The directive is clear and has not changed. Our fighters in Southern Lebanon have full freedom of action to thwart any direct or emerging threat against them.

Liz Landers:

Just yesterday, Israelis in Tel Aviv mined the streets, bidding farewell to one of the four soldiers killed in Southern Lebanon last week. An attendee voiced frustrations over Israel's exclusion from the weekend negotiations.

Asher Aronof, Herzliya, Israel, Resident:

With the talks of the negotiations between Iran, the United States, Israel is out of the question. We are with hands tied behind our back.

Liz Landers:

Meanwhile, at a natural gas export terminal in Qatar, officials said a blast killed at least 13 people, but there was no indication the incident was a planned attack. Operations had just resumed after the area was struck by Iran earlier in the war.

Tomorrow, Secretary of State Marco Rubio is set to travel to the Middle East to discuss the memorandum.

For the "PBS News Hour," I'm Liz Landers.